Houston-based Isramco Inc. has agreed to acquire varying working interests in producing oil and natural gas properties in Texas, New Mexico and Oklahoma from GFB Acquisition I, LP and GE Financial Services for approximately $102 million.
The agreement, which was executed on Feb. 15, is expected to close in March. The transaction includes mainly operated oil and gas properties in approximately 40 fields in East Texas, the Texas Gulf Coast, Permian, Anadarko and San Juan basins. Isramco noted that significant fields in the transaction are the Alabama Ferry Field in East Texas, the Bagley Field in West Texas and New Mexico, and the Esperson Dome Field on the Texas Gulf Coast. Net production from the properties is approximately 600 b/d of oil and 3.5 MMcf/d of gas. Based on a reserve report prepared by a third party consulting firm as of Jan. 1, total net proved developed producing reserves are approximately 2.7 million bbl of oil and 14 Bcf of gas.
Isramco, which was founded in 1982 and owns varying working interests in oil and gas wells in Louisiana, Texas, Oklahoma and Wyoming, said it anticipates funding up to 5% of the purchase price from working capital and that it will obtain third-party loans for the rest. In connection with the purchases the company and the Bank of Nova Scotia entered into a commitment letter in which the bank agreed to provide or arrange a secured revolving credit facility. Under the credit facility it is anticipated that the company will be able to initially borrow up to $54 million.
GFB Acquisition I, LP is a Midland, TX-based operator of oil and gas properties, formed in a partnership with GE Financial Services to acquire and exploit properties located in onshore oil and natural gas basins in North America.
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